Strait of Hormuz shut until Tehran's conditions met, Ghalibaf says

Crude loadings at Yanbu, Saudi Arabia's Red Sea port, have stopped, two sources with knowledge of the action told ABC News Tuesday.

The Yasref oil refinery is a 400,000 barrel per day operation and one of the Red Sea's largest diesel exporters. This is a port that served as Saudi Arabia's main bypass for Hormuz disruptions.

Andy Lipow, the president of Lipow Oil Associates, a Houston based consultant, told ABC News the impact of these disruptions can be catastrophic for the average U.S. consumer.

"You would be really concerned if you are a heating oil customer up in the New England area, the Northeast, because you're going to have absolute sticker shock," he told ABC News.

-ABC News' Desiree Adib

The war with Iran has cost the United States at least $38 billion through the end of July and is expected to further push inflation higher for American households, according to a nonpartisan Congressional Budget Office (CBO) assessment released Tuesday.

The CBO also warned that depleted weapon stocks could take a half decade or longer to rebuild, crippling the Pentagon’s ability to respond to another major conflict.

The assessment describes the financial and military consequences that will persist beyond the fighting, leaving the Pentagon with fewer weapons available for another major conflict while skyrocketing energy prices put pressure on household budgets.

The report notes that the Pentagon did not cooperate with the analysis or provide information requested by the Congressional Budget Office. The Pentagon did not immediately respond to ABC News' request for comment on the report.

Read more here.

-ABC News' Steven Beynon and Lauren Peller

Secretary of State Marco Rubio spoke by phone Tuesday with his Omani counterpart, Foreign Minister Sayyid Badr al-Busaidi, the State Department said.

"The Secretary acknowledged Oman’s important role in deescalation in the region and condemned recent Iranian attacks on commercial ships and countries in the region," State Department spokesperson Tommy Pigott said in a readout of their conversation.

"He reiterated the United States’ commitment to ensuring that Iran never acquires a nuclear weapon and to freedom of navigation through the Strait of Hormuz," Pigott continued. "He expressed support for deepening ties between Oman and the United States."

Oman's foreign ministry said in a statement that the two leaders, "exchanged views on efforts aimed at de-escalating tensions, containing their repercussions, and creating the conditions necessary to continue diplomatic efforts and address outstanding issues in a manner that supports the security and stability of the region."

-ABC News' Shannon Kingston and William Gretsky

Qatar warned Tuesday that the closure of the Bab el-Mandeb Strait would have “catastrophic” consequences for global trade, amid the ongoing blockade of the Strait of Hormuz and recent advances by Ansarallah along Yemen’s Red Sea coast.

"The world is suffering enough with the closure of the Strait of Hormuz, so we cannot also afford to add the Bab el-Mandeb into that equation," Qatari Foreign Ministry official Ibrahim al-Hashmi told reporters.

He said closing the southern entrance to the Red Sea would be "catastrophic for the entire world," adding that Qatar is pushing for "diplomacy, dialogue" as the regional situation continues to escalate.

-ABC News' Desiree Adib